US New Tariff Policy 2025
The US president has imposed new tariffs, affecting more than 50 countries, including India. This policy impacts many sectors, particularly in Indian exports.
Key Details
- India faces a 25% tariff compared to lower tariffs on over 50 other countries.
- Tariffs for Bangladesh and Pakistan are set at 20% and 19% respectively.
- ASEAN countries such as Vietnam, Malaysia, Indonesia, and the Philippines face tariffs ranging from 19% to 20%.
Impact on Indian Exports
- High tariffs could adversely affect the labour-intensive and high-value electronics sectors in India.
- Readymade garments (RMG) exports may decline due to lower tariffs on competitors like Bangladesh.
- Indian non-leather footwear and electronics manufacturing sectors may be hurt by beneficial tariffs for Vietnam and Malaysia.
Trade Negotiations and Challenges
- US-India trade talks are stalled over sensitive sectors such as agriculture and automobiles.
- India is resisting US demands to permit genetically modified (GM) agricultural products like corn and soya.
- US seeks greater access to India's agricultural and dairy markets, while India wants access for its textiles, leather, and footwear.
